Srikalahasthi Pipes plans ₹400 crore capex

Srikalahasthi Pipes Ltd. (formerly Lanco Industries Ltd.) has drawn up a ₹400-crore plan to increase the production capacity of its ductile iron pipe plant by two lakh tonnes to meet the growing demand.

The board gave its approval for the plan to raise the capacity of the plant from the present three lakh tonnes to five lakh tonnes at a cost of ₹400 crore.

“The board, at its previous meeting had sanctioned a capex (capital expenditure) of ₹145 crore and the balance capex was approved recently. The investment costs will be met through internal accruals,” said G.S. Rathi, whole-time director, Srikalahasthi Pipes Ltd.

According to him, the new blast furnace for the plant would be commissioned by the third quarter of 2020 and the increased capacity of ductile iron pipe plant by end March, 2021.

Mr. Rathi said that the ferro alloys project was under the final stages of execution. The first furnace would go on stream by September 2019 and the second furnace by December 2019.

The firm reported a 93% rise in its standalone net profit for the first quarter ended June 2019 to ₹33.37 crore. Production of ductile iron pipe rose to 65,518 tonne from 59,555 tonnes.

The Hindu